TOBACCO FARMERS MAKE HISTORY BY RE-ENACTING BOSTON TEA PARTY LARGESTRALLY YET BY NATION'S TOBACCO FARMERS WARNS OF HISTORY REPEATING ITSELF FRANKFORT, Ky., June 9 /PRNewswire/ -- In the largest grassroots rally yet by the nation's tobacco growers, more than 3,000 farmers from Kentucky and other tobacco-producing states in the Southeast converged on Kentucky's state capital today to stage their own version of the Boston Tea Party. Wearing green ball caps inscribed with "Fairness for Tobacco Farmers," farmers met with legislators and listened to speeches on the steps of the Capitol before marching to Capitol Avenue Bridge where they hurled tobacco into the waters of the Kentucky River. The rebellion symbolized the farmers' unified opposition to the proposed increase in the federal cigarette excise tax. The "Kentucky Tobacco Party" parallels the historical Boston Tea Party because of the haunting similarities between the British tea taxes of the 1770s and the dramatic increases in tobacco taxes in recent years. Similar to the British Tea Tax, regressive tobacco taxes will lead to "underground" cigarette distribution and contraband activity said rally participants. When the British Parliament enacted its tea tax on the American colonies, sales of British tea dropped by 60 percent, while illegal imports and consumption of contraband tea increased by about the same margin. Tobacco farmers believe that additional tobacco taxes will create consumer patterns similar to those of tea consumers in the 1770s. According to the Toronto-based investigative accounting firm of Lindquist Avey MacDonald Bakersville Inc., when tobacco taxes were steadily increased in Canada, one out of every four cigarettes smoked in that country became contraband (compared to one out of every 176 only a few years ago). Henry West, a farmer from Paint Lick, Ky., said the Boston Tea Party re-enactment was the farmers' way to "hammer a message to President Clinton that government is already making more than enough money from tobacco." As he prepared to toss a stalk of tobacco off the bridge, West said that each stalk of tobacco represents $5 in local, state and federal taxes. "On average, I grow 8,000 stalks of tobacco per acre," he said. "That means that the government receives $40,000 from each acre of my tobacco. And now they say they want more! We're saying enough is enough." Former Kentucky Senate Majority Floor Leader Joe Wright, a tobacco farmer from Harned, Ky., told the gathering: "Ours is a message that was born in America's farm houses, carried on our backs to the state house, and must be heard at the White House. We're asking our Congressional leaders for nothing more and for nothing less than fairness for tobacco farmers." Tobacco is grown on an estimated 136,000 farms in 23 states and Puerto Rico, according to the Tobacco Institute. More than 98 percent of Kentucky's counties grow tobacco. Kentucky is the world's largest producer of burley tobacco and many rural communities depend on tobacco money for economic survival. "In 1993, federal, state and local governments collected about $14 billion in excise and sales taxes on tobacco," said Dr. Wilmer Browning, executive director of the Council for Burley Tobacco, an umbrella organization for various associations in the tobacco industry and sponsor of today's rally. "We believe the tobacco industry is paying more than its fair share in taxes. Additional taxes will seriously damage the industry and affect thousands of families." Browning added that a large increase in the federal excise tax on tobacco would greatly reduce sales of those products and, subsequently, reduce tax revenues in many individual states, creating more budget shortfalls to be filled by additional taxes. Farmers in other tobacco-producing states anticipate rallying before their state legislators in the months to come. About 1,000 Tennessee farmers staged such a rally in April at their state capitol in Nashville. -0- 6/9/94 /CONTACT: Dan Hartlage, 502-584-0371, or Brian Waddle, 502-584-0371 or (Night) 502-454-4381, of Council for Burley Tobacco/ CO: Council for Burley Tobacco ST: Kentucky IN: TOB SU: Transmitted: 94-06-09 15:51:14 EDT